Two new savings products have been announced, aimed at supporting growth of UK companies and encouraging a culture of saving.
Individuals can currently deposit up to £20,000 each year into an individual savings account (ISA). This is a sensible move as any interest earned is tax free. The annual limit is being increased to £25,000, but the additional £5,000 can only be invested in UK-focused assets.
There is currently no timetable for when the new UK ISA will be available as the government is still consulting on the details.
From April 2024, UK savers can invest in new British Savings Bonds, delivered through National Savings and Investments. The bonds will offer consumers a guaranteed interest rate, fixed for three years.
The Chancellor also promised to bring forward the legislation to clarify the position on whether fractional shares (portions or slivers of shares that are smaller than a whole or single share) can be held in ISAs, which was promised in the Autumn Statement. This should be completed by the end of the summer and will further support savers investing in a diverse range of investment types.
If you are considering where to put your savings, consult an independent financial advisor who can help you work out the most beneficial structure for your investments.
If you need help with this or any other accountancy, tax and small business issues, get in touch for a no-obligation discussion – see our Contact Us page for how to reach us.
Keeping you compliant | Saving you tax | Helping you grow